Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1887-12-03

BANK EXAMINERS REPORT.
nov Inc financial Institutions Of Iaine
are Ploufishins.
Inc character and Work Of the Loan and
Building Associations.
BONE Interesting Figures that Indicate
Progress and Prosperity.
Ffaceioal Suggestions Regarding the
Management Of Banks.

I
We are permitted to make the following
abstract from the forthcoming report of
Bank Examiner Richards:
10 me Honorabte Gorernor and Er.c,,t;r.
Council Of the State Of Maine.
ne BANK Examiner has the honor To pre-
sent the Thirty-first Annual Report of this
department
The number of savings banks has increased
10 hfty-hve by the organization of the Cor
nish Savings Bank, chartered BY the Legisla-
tnre at its last session.
The whole number of depositors Nov. Ist
was / 10, 229, of which %, 403 represent a de-.
post OF less than $500 and 23,826 represent a
larger average
The number of depositors has increased
during the year 4 ,j38. The accounts of less
than $500 deposits have increased 4.455
while those above $500 each show an increase
of only So
The average balance to each depositor is
9"zo''8' an increase for the year of l.I9 in
each account.
The aggregate of deposits Nov. 1st, 1856.
was s31 ,2l5, 07l.40; May LIST, 1887, it was
s33 ,2F 1909; Nov. lst 1887, it was s3s.
8l9,6i3.22; The increase during the first six
months was 81 ,032 1893. 40 and the last half
of the year. s572, l72.33 and the total in
crease for the year, 81 ,60i ,57l.s2 The Re-
served Flu ii has increased during the year
s79 $500 and amounts to 81 ,43s, 100 Sc.
Regular semi-annual dividends have been
paid by all the banks, as follows:
Three banks per cent per annum; four
banks, l-2; thirty-eight banks, 4; four
banks, l-2 one bank, 81 four banks
The amount of these dividends was ST.
1856, j0i. 81, and at the close of the year there
remained in the banks 1857 ATOP of undi-
vided profits
The fifty-four savings banks have paid a
State tax of 1882, 1856. This does not in
clude the tax on deposits in the several trust
companies.
The amount invested in United States
bonds has decreased from 81 ,2O7 ,924 IL to
81 $40, 75i.l2.
The investment in county and city bonds
has decreased from Sl2 ,526, 1913 A. to SIP
1873, lOG.sj.
The amount invested in railroad bonds has
IS.
The investment in bank stocks has in
creased from $ / 900, 2S3 s3 to 50, I20. 065 Os
Besides the above the banks hold railroad
stock amounting to $3.50 ,63j.S7; corporato,
bonds, S99S ,5JS 81 corporation stocks, SlG5,
GA real estate, 81, l4S, 547 90; mortgages o
real estate in Maine, SG,352, 794 .03 corpora
ton and collateral loans, 81 1873, 1901 casl
on hand Nov. lst $3.50, 300 30.
1t appeared by the appraisement of tn
assets of the savings banks in May that their
valne was So 237 004 % in excess of all liza
bilties.
New TRrsT CoMrANIEs.
Under charters granted by the legislature
three new trust companies have been organ
The Eastern Trust and Banking Company
Bangor.
The Northern Banking Company, Portland.
The oxford County Loan Association,
Norway
These companies are commencing business
under favorable auspices. Their officers are
gentlemen well and fayorably known to the
people of this State, and their names are a
sufficient guarantee that the affairs of these
corporations will he honestly and economically
administered.
LoAN AND BUILDING ASSOCIATIONS.
The first building association in this coun-
try was organized more than half a century
ago. Since then many associations have been
established and successfully conducted. but
it is only within n comparatively few years
that their real character and universal value
have received general public recognition.
The first Loan and Building Association in
this State was organized at Richmond in 1873.
under a special charter. Soon after gen
eral law on the subject was passed, but was
revised and essentially modified by the present
legislature. This law, as it now stands, pro-
yidcs in general, that Loan and Building
Associations may be organized in the manner
provided for the organization of savings
banks and trust and loan associations. The
capital of every association must consist of
the dues collected of its shareholders, and
shall not exceed one million dollars.
This capital is divided into shares, the ''ul
innate value" of each being two hundred dol
lars The shares are paid for by monthly
installments of one dollar per share until each
share reaches its ultimate value, !. {. $500.
The shares are issued in series in such
amounts and at such times as the members
of the association may determine. The funds
of the association are loaned to its share
holders on satisfactory security. and all
profits and losses are divided among them
pro rata. To become a shareholder it is
only necessary to take out a certificate of as
many shares as one may want, but no person
shall hold more than twenty-five shares.
minors NAV hold shares by trustees. If a
shareholder fails to pay his monthly dues he
is subject to a fine of not more than two per
cent month on each dollar in arrears, and
if he continues in arrears for SIX consecutive
months he forfeits his right of membership
and his account may be closed. Share
holders may at any time on a months notice
withdraw the value of their shares, but in so
III, tha IneS
of such part of the profits as
the bylaws may provide, and CD
TO the payment of proportonate
mart of any unadjusted loss. These two pro-
visions are for the purpose of giving greater
stability by discouraging Withdrawals. Two
shares of each shareholder shall be exempt
from attachment and execution. When a
share has reached its ultimate value the
holder shall be paid in full and his account
closed. But he may renew his connection
nv investing in other shares. 1t is evident
that were there no profits 1t would require
| l6 % wears for each share TO reach ITS ulti
mate value, but experience has shown that
the protits reduce this time to 10 or II years.
| This makes profitable investment
| In regard TO the investment of the funds
of Loan and Building Associations the IA"
proyides that. Every borrower snail De 4
! shareholder Each member Is ehtltieu W
receive loan of two hundred dollars tor
every share held by him.
Loans may be made either ~ by giving
rs security first mortgage bond on rea,
estate and pledging the shares as collateral
or t2) shares alone may be pledged iof any
arount not exceeding their paid up value.
On every loan is charged an ahhua, in'e me-,
~ si1 ncr cent. PAYABLE in monthly Install
vents The manner of loaning funds OF the
;ns,;trt;on is as follows; Each month the
d;roctors of the association meet and BID on
~ auction the money available for loans
That is, the borrower, in addition to paying
iuas and interest, agrees TO pay small per-
centage for the privilege of using the money,
TAKE practical illustration A woTkm IAN
r. 20 build for himself home. He be-